« previous next »

Author Question: Why does demand not change when the price of a good changes with no change in the other influences ... (Read 71 times)

ap345

  • Hero Member
  • *****
  • Posts: 537
on: Jun 29, 2018
Why does demand not change when the price of a good changes with no change in the other influences on buying plans?
 
  What will be an ideal response?

Question 2

What is meant by market failure?
 
  What will be an ideal response?


verrinzo

  • Sr. Member
  • ****
  • Posts: 346
Reply #1 on: Jun 29, 2018
Answer to Question 1

If the price of a good falls and nothing else changes, then the quantity of the good demanded increases and there is a movement down along the demand curve, but the demand for the good remains unchanged and the demand curve does not shift.

Answer to Question 2

Market failure occurs when resources are misallocated, or allocated inefficiently. The result is waste or lost value.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Between 1999 and 2012, American adults with high total cholesterol decreased from 18.3% to 12.9%

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

Medication errors are more common among seriously ill patients than with those with minor conditions.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Good body mechanics for sitting on chair while performing massage. A. Sit with back and head in ... Good body mechanics for sitting on chair while performing massage. A. Sit with back and head in ...
Chronic disease is caused by a mixture of genetic and environmental influences Chronic disease is caused by a mixture of genetic and environmental influences
The demand for energy is met by burning coal and other fossil fuels The demand for energy is met by burning coal and other fossil fuels
Geoengineering is not a solution to climate change Geoengineering is not a solution to climate change
Peanut butter is good source of protein Peanut butter is good source of protein
Consistency and Change in Personality Over the Lifespan Consistency and Change in Personality Over the Lifespan
Video: Bipolar Disorder

For a complete list of videos, visit our video library